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eFENERGYFUELS <br />Energy Fuels Resources (USA) Inc. <br />225 Union Blvd. Suite 600 <br />Lakewood, CO, US, 80228 <br />303 - 974 -2140 <br />www.energyfuels.com <br />MW -SUN3 has not yet been developed because it took a little time for the water level to settle after drilling was <br />completed. We measured water levels at all three wells yesterday and MW -SUN3 appears to have stabilized so <br />in the next couple of weeks we will develop the well and collect a groundwater sample. Reseeding was <br />completed at MW -SUN 1 and MW -SUN2 on 5/20/2013; it will be completed at the two new well locations in <br />the next couple of weeks. A ground survey will also be completed at MW -SUN3 and MW -TPZ1 in the near <br />future; the mapped locations and surface elevations provided here are approximate. <br />GROUNDWATER SAMPLING RESULTS <br />Groundwater samples were collected at MW -SUN1 and MW -SUN2 when they were developed. Attachment B <br />contains the laboratory results from these samples. The Sample IDs referred to as Sunday 65 and Sunday 2 65 <br />are duplicates. We have not yet had a chance to review the results but hope to get to that soon. We will provide <br />with you with more information when we have had a chance to look at them further. <br />PROPOSED QUARTERLY GROUNDWATER SAMPLING SOLUTION <br />When we drilled the pilot hole, located at MW -SUN3 and later drilled MW -SUN1 and MW -SUN2, we made <br />you aware of the unusual flow and water level conditions in those holes in a memo dated October 18, 2012 and <br />titled Interim Summary Report, Sunday Mine Area Monitor Well Project. Just for reference, that memo is <br />included as Attachment C. <br />Table 1 contains an overview of the water level information in these wells. As a result of the depth of these <br />wells, the large volume of water standing in them, and the very low inflow rate, we are evaluating low -flow <br />sampling methods for use in MW -SUN 1, MW -SUN2 and possibly MW -SUN3. MW -TPZ1 is a shallow hole <br />and contained no water when it was drilled. As a result, if it contains water during quarterly sampling events, it <br />will be sampled in standard fashion using a hand - bailer. <br />While low -flow sampling is not widely used, it is applied in similar such circumstances in Colorado. <br />Specifically, Edgar Ethington at CDPHE approved the use of low -flow sampling equipment and methods at <br />Energy Fuels' Pinon Ridge Mill site in 2007. He can be contacted at 303 - 692 -3438, <br />edgar.ethington(d)state.co.us. <br />Assorted low -flow sampling equipment is available and we have worked with our groundwater consultant, <br />Bruce Smith at Western Water & Land, and internal environmental field staff to narrow down the options to a <br />preferred line of sampling equipment. We propose to use the Blatypus Pump system produced by BEEST Inc. <br />Attachment D contains a brochure for this equipment and Table 1 includes configuration for its use in these <br />wells. We propose to install permanent pumps in the wells at about 100 feet below the static water level with <br />drop tubes that will extend to the middle of the wells' screen interval. A single, high - pressure regulator and <br />control unit will be used by field staff to operate all of the wells. This combination of permanent, down -hole <br />and mobile surface equipment will reduce the amount of decontamination need prior to sampling and keep <br />overall equipment costs down. Situating the drop tube at the center of the screen interval will allow us to draw <br />water directly from the Salt Wash formation shortly after pumping begins, without having to purge 3 complete <br />Sunday Mine Complex 2 Revision 0 <br />Y. IUMIColwdolSunday Conpl erSaseline .SndieslGromdwnre/(Well Sampling PlansLSunday_PmpwedLo.F10 SaVlmg.da= May 2013 <br />